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It's just it can get a bit confusing if we don't understand who's who.
And who had POA for the husband? His wife, yourself, somebody else?
You state that APS was granted guardianship, even though there was a power of attorney in existence. This does mean that the court has given APS the authority they need to make decisions on the gentleman's behalf, in his best interests; and if APS has concluded that his welfare depends on nursing care in a residential facility then yes they absolutely do have the legal right - nay, the legal duty - to make that happen.
That said, they do not lightly separate a married couple; and unless there is a very good reason not to they will actively assist the wife to conserve their marriage as far as possible. Very good reasons, by the way, are not necessarily anybody's *fault*,
Clearly, something went wrong; for the wife, the husband, both. If you wouldn't mind describing what happened then forum members may be able to suggest constructive ways forward. It's very sad to think of the poor lady feeling that her husband is being taken away from her, so I hope it will be possible to make this situation better.